3B Public Hearing 2012 0521 - Laserfiche WebLink

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File Number: 12 -258 AT &T - five year lease with two 5 -year options Public meetings were held to receive input on the proposed project including a City Council work session on April 25, 2011 and a discussion with businesses at the June 24, 2011 Downtown Association meeting. Progress on the development of Village Marketplace was negatively impacted on June 28, 2011 when the State froze redevelopment agency activities thereby making it impossible for the Redevelopment Agency to sell the parcel as previously scheduled and planned. Progress on Village Marketplace continued and public workshops were held on September 2, 2011 and September 27, 2011 and a project update was provided to the City Council at its November 7, 2011 City Council meeting. On December 29, 2011 the State Supreme Court upheld AB x1 26, which eliminated redevelopment agencies effective February 1, 2012. City staff immediately began working with the City Attorney's office to determine the process by which to legally sell the property. The property must be sold by the City serving in its capacity as the Successor Agency to the Redevelopment Agency. Sale proceeds will be forwarded to the Alameda County Auditor Controller for distribution to taxing entities as required by AB x1 26. The applicable entitlements for Village Marketplace were reviewed at a public hearing, approved, and recommended for City Council approval by the Planning Commission on April 19, 2012 and are being brought to the City Council for approval concurrently with the Disposition and Development Agreement. The City and Innisfree have reached a negotiated sale price of $2.25 million and staff is recommending execution of a Disposition and Development Agreement to sell the Site to Innisfree for development of Village Marketplace consistent with the terms and conditions of all approvals, entitlements and permits. Analysis Sales Price There are three primary means of appraising commercial real estate: the cost approach, sales comparison approach and the income capitalization approach. Each method has value depending on the situation and type of real estate involved. Cost Approach - The cost approach is not commonly used. The primary assumption of this method is that the value is the same as the cost to replace the property. Sales Comparison /Market Approach - This is the method most are familiar with as it is the accepted method for valuing residential real estate; this method is also used to value commercial real estate, although it is not the most common method. Typically this method involves selecting properties with similar characteristics in the same market area that have recently sold. Once those properties are found they are compared to the property in question and a professional appraiser will deduct value from the subject property for comparative deficiencies and increase value for comparative advantages. City of San Leandro Page 3 Printed on 511512012